Fortescue doubles down on green hydrogen, cops first strike at AGM
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The news: Fortescue will spend USD750 million ($1.1 billion) over three years on two green hydrogen projects and a green iron project on sites in United States and Australia. The announcement came at the group's AGM, during which shareholders lodged a first strike vote against the remuneration report, according to Reuters, amid controversy over bonuses paid to retiring executives.
The numbers: The USD550 million Phoenix Hydrogen Hub in Arizona will comprise a 80 megawatt electrolyser and liquefaction facility and produce up to 11,000 tonnes of green hydrogen, the mining giant said, with production to kick-off in 2026. Fortescue will also invest USD150 million in a 50MW project at Gladstone in Queensland with production to begin in 2025. The miner will also trial a green iron production plant at Christmas Creek in Western Australia at an estimated cost of USD50 million.
The context: Fortescue — traditionally an iron ore-focused mining giant — is in the process of rebranding as a global green energy company. Founder Andrew Forrest wants the miner to become the world's biggest green hydrogen producer, something that will require vast amounts of money and energy.
Some Fortescue shareholders have been concerned about the large number of executive exits in the past year, the Australian Financial Review reports, but even more about the bonuses received on the way out.
What they said: ""Based on the votes received to date on this resolution, Fortescue will receive a first strike for the FY 23 remuneration report," said Penny Bingham-Hall, chair of Fortescue's remuneration committee.
"We acknowledge this feedback, particularly in relation to the special one off payments made in the last financial year."
The sources: ASX Announcement, Reuters, AFR
